On the web company that is dating has consented to sell its “casual dating” business to a company run by certainly one of its co-founders in a deal well worth Р’Р€45.1m.
The Edinburgh-based company stated it had been attempting to sell business to Grendall Investment Limited so that you can give attention to its niche and conventional websites.
The offer includes casual sites that are dating as Benaughty.com and Flirt.com.
In addition includes a software that is separate contract with Grendall, well worth Р’Р€2m.
Grendall, which can be registered within the Uk Virgin islands, owns a portfolio of online sites that are dating is handled by Cupid co-founder and 15% shareholder Max Polyakov.
Cupid continues to operate a wide range of mainstream and niche sites that are dating including Cupid.com, Amour.com, UniformDating.com and Canoodle.com, along with a number of international web sites.
It will likewise continue steadily to run dating activities company Speeddater.com.
Cupid’s share price climbed by a lot more than 16.5percent on to stand at 84.5p monday.
The company said it had decided to sell its “casual dating” sites because they did not fit in with its long-term strategy in a stock market announcement.
It stated: “Cupid plc believes that in niches and main-stream relationship, clients are demanding increasingly top quality and that this is often a fulfilling area for the business to target its efforts.
“by comparison the organization thinks that the casual market customer eventually calls for the prospective to get more adult oriented content and that going towards this end regarding the spectral range of dating just isn’t a route that the organization wants to pursue.
“throughout the previous several years, Cupid plc has increasingly spent M&A (merger and purchase) tasks towards niche community web sites and main-stream online dating sites such as for example UniformDating.com and Cupid.com correspondingly, after which spent greatly within these websites post purchase.
“the business thinks that such websites have actually more powerful long-lasting potential, and building a global profile of niche and mainstream online dating services makes for an improved quality, more sustainable organizations by which to take a position.”
It included: “as a result the casual internet sites try not to fit in this approach therefore the board thinks that realizing money from their purchase to a celebration dedicated to possessing such assets is a really good step for Cupid plc.”
Cupid leader Bill Dobbie stated the disposal ended up being a “significant good action” when it comes to team.
He included: “The proceeds from the purchase allows us to help expand improve the group that is remaining strengthening our brands as well as enhancing and widening the client idea.
“The consideration additionally provides the prospective to supply shareholders with further comes back.”
Cupid stated its primary areas – the UK, mainland Europe, the united states and Australia – would stay unchanged.
The disposal includes the purchase of 100% for the share money of Cupid plc’s Cyprus-based subsidiary businesses, Yarra Limited and EZD Limited, which operated the team’s European casual sites that are dating.
In 2012 the casual relationship supply’s assets created total product sales of about Р’Р€51m, along with the rest associated with the team recording sales of about Р’Р€29.8m.
Previously this present year, Cupid denied user that is creating on its sites to entice clients to join up, after a study because of the BBC’s “5 real time Investigates”.
It later on stated an independent report did perhaps not find any proof that the business utilized fake pages to enhance its account.
But, the report by auditors KPMG discovered that Cupid’s staff are not obviously identified, which generated confusion for customers.
As a total result Cupid’s “motivation” group had been replaced by “dating advisors”.
Cupid additionally recruited brand new staff that is senior the united kingdom and stated it planned further management modifications this year.